Here's the proper scoop...
...Under the agreement, which is subject to shareholder approvals, Dragonair will be wholly owned by Cathay Pacific. Air China will acquire a 17.5% stake in Cathay Pacific, and Cathay Pacific will double its shareholding in Air China to 20%.....Dragonair will continue to operate under its own brand, but under Cathay Pacific management.
http://www.cathaypacific.com/intl/ab...141126,00.html